In this episode of the Rich Dad Radio Show, hosted by financial education icons Robert and Kim Kiyosaki, we explore in depth the financial strategies that allow the wealthy to legally minimize their taxes while maximizing their wealth. If you’re curious about how the rich use debt, real estate, and the tax code to their advantage, this episode is a must-watch.
The Basics of Debt and Taxes
Robert Kiyosaki kicks off the episode by reminding us that the Rich Dad Radio Show is all about delivering both the good and bad news about money. This episode focuses on taxes and real estate, revealing how the wealthy strategically increase their income while reducing their tax obligations. Highlighting a memorable moment from the 2016 presidential debate, where Donald Trump famously said, “That means I’m smart” in response to not paying taxes, Kiyosaki explains that this approach is a form of financial intelligence that savvy entrepreneurs use to their benefit.
The Importance of Asset Classes
Kim Kiyosaki emphasizes the significance of choosing the right asset class, outlining the four basic types:
1. Business
2. Real Estate
3. Paper Assets (stocks, bonds, mutual funds)
4. Commodities (gold, silver, Bitcoin, oil, gas)
Understanding how taxes affect each asset class can lead to smarter investment decisions. This episode features expert insights from Tom Wheelwright and Ken McElroy, who dive into the tax benefits of real estate investments.
Expert Insights
– Ken McElroy: A seasoned real estate investor, Ken manages a vast portfolio of properties, primarily in Texas and Arizona. He illustrates how borrowing money for real estate can result in minimal tax liabilities while generating substantial returns.
– Tom Wheelwright: A tax advisor, Tom explains how the tax code incentivizes debt and depreciation, allowing real estate investors to legally offset their taxable income and defer taxes.
Real Estate: The Ultimate Tax Shelter
Robert and Kim discuss their strategy of acquiring real estate to offset their business income. By converting cash into debt and investing it in real estate, they generate tax-free income and benefit from property appreciation. Ken McElroy shares a real-life example of turning a financially distressed property into a profitable investment, emphasizing the importance of excellent property management and strategic renovation.
Misconceptions About Diversification
The Kiyosakis challenge the common advice of diversification, arguing that true diversification involves investing in tangible assets like real estate, commodities, and businesses rather than just paper assets like stocks and bonds.
The Role of Teamwork
Robert and Kim stress the importance of having a knowledgeable team. Real estate investments require skilled management, legal guidance, and strategic planning. They share their journey from managing properties themselves to partnering with experts like Ken and Tom, who have significantly amplified their investment success.—–
Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.
The content presented here is based on the speaker’s personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.
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42 Comments
Is anyone in Australia here? Just the real estate here is crazy hard to work around.
How does business offset their profit via realestate or commodities if you are not in usa and there is no government incentives?
Excellent good 👍, squeeze it, pinch it, sieve it, through mix it, knead it, add a few. Good morning to you all ✨ ❤🎉❤🎉😮
💎
You guys reckon it’s better to store metals in a vault ? Is that better overall from tax point of view ?
Trump is definitely smart, dont doubt it and his deplomacy is second to none. Other leaders bow down to him
A lot of talking but not saying anything
He talks about silver
Silver hasn’t moved in years
Avoid it!
🙏🏾🙏🏾🙏🏾🙏🏾
Woooo baby girl please be gentle with daddy
Do you need to have a real estate license or anything of that matter to start?
So you guys are pulling cash out of refinancing to live off while all “earned” profits are seen as reinvested… ok
engine number three
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bills philosophy
whats the intro music playing on background please?
The depreciation is only good on the income produced from that property.
What about offsetting income tax from other businesses using real estate?
I’m not classified as a real professional according to the IRS so the depreciation doesn’t offset other income.
Back in 2007, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.
Theres a foster child scam. Gay men r fostrring n keeping the money n leaving kids alone in property. I was victimized by it. Angel garcia abandoned them. N House.
What about kamalas tax proposal. Tax ur equity 25% per yr. Even u dont sell. Like wtf. Communism.
There is no zero Tax unless you have millions and millions in debt on loans . In addition one must continue to purchase!!
Buy till you die 100%
A small small percentage of people can do this .
A
The economic crisis and downturn are all the signs of 2008 market crash 2.0, so my question is do I still save in the US dollar or is it okay to move all emergency and savings to precious metals?
Digital silver in a digital age, litecoin is a digital precious metal, not a security. Litecoin is the oldest coin on the market after bitcoin, since its inception in 2011. The scarcity of litecoin is the key feature of its technology. Everyone tends to flock to digital silver and digital gold, litecoin, and bitcoin, when things aren't going well. Litecoin is a decentralized digital commodity, just like bitcoin, but not even close so heavily concentrated in a few hands like bitcoin is. Both have Proof-of-Work consensus, and both have a limited supply of coins. Only that litecoin is lighter, swifter, and hugely undervalued against bitcoin. Litecoin (LTC) being a digital commodity provides a decent inflation hedge as well because there will be mined only a limited number of 84 million litecoins in total.
Yıpranan bir şeyi uzun vadede, yatırım olarak görmüyorum. Emeginize saglık.
Thanks Robert, this knowledge is invaluable.
Very interesting
Thanks for this valuable information 👍🏾
My only ones mentors pushing me up every day 👏👏👏
This is the second time Ive heard ken and the kiyosakis refer to rickards new book. Can i get some clarity on the title please and thank you
ROBERT KIYOSAKI ❤❤
1971 changed the world! If we stop borrowing the economy siezes up. I bet 1971 was done on purpose apart of a bigger plan
100% agree. Gold, silver, and soon real estate. Crypto is compromised, NSA owns SHA256, etc. Stocks are just gambling now, no longer linked to good fundamentals.
Thank you thank you thank you from the bottom of my heart with tears in my eyes. Thank you so much thank you Tom. Thank you Kenny. Thank you guys so much life-changing from Detroit Michigan. I know it’s not great here as far as Real Estate goes but thank you so much. We will change it.
Thank you so much for teaching thank you for being a teacher thank you, Miss Kim Kosaki and Mr. Kosaki thank you Tom and thank you Ken
How come Mr. Robert give Mr. Ken $1m, and the Bamk lending you $10 m so you can purcharge more properties…while you have a debt. Anyone pls explain ? Thanks
The rich need to pay their damn taxes like everyone else
Robert and Kim is like a God when it comes to debt, real estate , gold and silver. Love you both sir and mam🖤❤️
this is what is broken in this economy, people with money and capital hoarding properties and renting them to keep the rest poor. then they sell and if they buy a bigger property they dont pay taxes. then their children inherit it all. the american dream does not exist anymore
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Michelle Stewart.
Robert and Kim have become the bank because cash is the liability to them.
Please tell me you and Kim are back together 🙂
Real estate in a country like Canada?
This might be true only in some places.
Thank you for the show Robert
Cool. Sb spanish please 😊
❤